India’s Semiconductor Journey: From the 1960s to Today’s Chip Push

India’s semiconductor story is more than sixty years old — full of early ambitions, missed chances, and fresh attempts to join the global chip race.

1960s–1970s: Laying the Groundwork
In the 1960s and 70s, India saw the strategic importance of building its own electronics and semiconductor industry. State-run companies like Bharat Electronics Limited (BEL) were set up to reduce dependence on imports. A few Indian firms even began producing germanium semiconductors, and plans for large fabrication plants took shape.

Fairchild Semiconductors, a pioneer in integrated circuits, once considered setting up its first Asia plant in India — a decision that could have changed the country’s tech history. In 1976, the government set up the Semiconductor Complex Limited (SCL) in Mohali to produce chips for defence, telecom, and space. But limited technology, weak infrastructure, and lack of funding slowed progress.

1980s: Early Manufacturing and a Major Setback
In 1980, the Department of Electronics opened seven chip design centres in cities like Noida, Bangalore, and Pune to strengthen SCL’s work. But a shortage of skilled engineers, high staff turnover, and patchy funding meant the centres didn’t last long.

By 1984, SCL began manufacturing chips at its 51-acre Mohali plant — three years before Taiwan’s TSMC was founded. India briefly had a head start. Then, in 1989, a mysterious fire destroyed the SCL facility, erasing years of progress. Although it was rebuilt to produce chips for ISRO, India’s wider chip ambitions took a serious hit.

1990s–2000s: Moving to Design Work
After economic reforms in the 1990s, India became a global hub for chip design, but not manufacturing. In 2007, the government launched its first Semiconductor Policy, aiming to attract ₹24,000 crore in investment and build three fabrication units. Big names like AMD and Intel showed interest, and SemIndia signed a deal with AMD for fab technology — but delays in policy approvals and strict investment rules meant the projects never took off.

2010s: Plans That Didn’t Materialise
In 2013–14, the government approved two new semiconductor projects — HSMC (with STMicroelectronics and Silterra) and Jaiprakash Associates (with IBM and Tower Semiconductor). But both failed: Jaiprakash pulled out in 2016, and HSMC’s licence was cancelled in 2019 after years of delays.

2020s: A New Chapter
With global supply chain disruptions and rising geopolitical tensions, India has made chip self-reliance a top priority. The India Semiconductor Mission, launched in 2021, offers huge incentives for new fabs. Companies like Vedanta-Foxconn have proposed large plants, aiming to finally bring modern chip manufacturing to India.

From Missed Chances to New Hope
India’s semiconductor journey is full of “what could have been” moments — from Fairchild’s early interest to the fire at SCL and a series of stalled projects. But with strong government backing, a thriving chip design industry, and global demand for new manufacturing hubs, India may finally be ready to turn decades of ambition into reality.